InformationWeek

or all the lip service that companies pay to the strategic nature of their IT investments, too many have a procurement mentality when it comes to nothing more than purchasing decisions. Such a mind-set invariably creates a division between the company and its technology suppliers that can stand in the way of building innovative solutions that deliver clear business value.

A better approach is for companies to look at their technology investments as strategic partnerships with their technology providers. But to make this partnership approach work, it's imperative to keep three principles in mind:

Companies would be better served by giving their technology providers latitude to think creatively and build innovative solutions. Lincoln National Life Insurance Co., a variable-annuity company in Fort Wayne, Ind., recently partnered with IBM and Xenos Group Inc., a software company that transforms legacy data into E-business applications, to create an innovative way to provide insurance brokers with access to critical client infor-mation while on the road. For IBM, building the offering required the assembly of software components not typically packaged together, including technology from a third-party partner, Xenos. For Lincoln, giving IBM the flexibility to think creatively and work with complementary vendors--rather than dictate the vendors' approaches--resulted in an innovative solution that provided exactly what it needed.

Overall, the closer you work with your providers, the greater the likelihood that you'll be able to create long-term strategic assets. Giving suppliers the flexibility to act creatively, forging incentive-based relationships, and rationalizing expenditures as investments are keys to success. Of course, success in any of these areas depends on trust. If you build trust with your partners, you'll have a much easier time riding out the inevitable bumps.

When reviewing your technology relationships, be sure to ask yourself if you trust your partner. If not, it's time to rethink your partnering strategies and to consider the above principles in order to strengthen your alliances to gain a long-term strategic advantage.

James K. Watson Jr. is chairman and CEO of Doculabs, an advisory firm that helps companies choose technologies and strategies for E-business. He can be reached at info@doculabs.com.